Tag Archives: TBTF

Henry Ford on fractional-reserve banking.

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

The Federal Reserve in 5 minutes.

Murray Rothbard – The Case for a 100 Percent Gold Dollar. (I’ll try to remember adding more Murray pieces after I finish them).



My Controversial Message About the Rich and the Poor

The amount of money that you receive is based on how much people value what you give.

People will say “Well poor people shouldn’t be made to feel like less of a person because they are giving less.”

Well let me ask you something: why are you valuing them just because they’re poor? You’re obviously valuing them because of the amount of their possessions. So why is it ok to say that we can value a person simply because they’re poor, but we can’t value a rich person just because he’s rich?

In other words, why is the poor person valued because of his poverty, but the rich person isn’t valued because of his wealth?

Can only poor people be valued?

Why does poverty make you a saint, and why does wealth make you a devil?

If “poor people shouldn’t be made to feel like less of a person”, why should rich people?

If we can value poor people because of the amount of possessions that they have, why not rich people?

Rich people are hated mainly out of envy, and if not envy, then just ignorance. Mainly envy, however.

I would venture to say that the majority of people on Earth would like to be rich. But the majority are not.

Are the rich people keeping people poor?

How does Bill Gates keep me poor? By offering products for me to buy?

When he offers those products to me, am I more poor when I don’t buy them?

Am I more poor when I buy them? Yes, I may have less money. But I have a product. So how can I be more poor? I had a product that I didn’t have before: doesn’t that make me wealthier?

There is a difference between caring about the poor and destroying the rich.

Technically, you could steal a rich man’s money in order to feed the poor (the ol’ feel good Robin Hood story).

However, you aren’t just stealing that money from the rich man. You’re stealing money from everyone he would have bought something from. And you aren’t replacing it with anything. That’s why economies shrink (less jobs! Oooooooooh).

How often do you give your own money to people in the street? If you don’t, why don’t you? Is it because you know that they are going to go buy alcohol? But they’re poor! Don’t you care about them? You’d rather the person with millions of dollars give him some money, so that you could take credit for “helping out the poor.” However, you don’t see what the rich person actually does with his money. The rich man creates products for you to buy. The rich man provides you with jobs and wages. He can’t do that without wealth.

All of these companies that are attacked: they produce a lot of products, and they employ a lot of people. That would be impossible if these companies weren’t rich.

Do you ever wonder why corporations are bigger than small businesses? They have more money. You know why there are so many Wal-Marts around, but your small business doesn’t have as many chains as Wal-Mart does? Because they’ve made more money than you. How have they made more money than you? Was it slave labor? Was it because they ripped their customers off? Was it because they offered poorly made products? Let’s think about these things:

Why do corporations have more money than small businesses?

When you go to Wal-Mart, you’re looking for something that they have that you want or need.

That doesn’t happen as often in a small business.

In other words, Wal-Mart is offering MORE things that MORE people want at CHEAPER prices. How does that make them evil?

Does it make them evil because they’re running you out of business?

Lower your prices then.

Will lowering your prices put you out of business?

Why should I as a paying customer be forced by law to pay for something that’s more expensive than something else I could have freely bought?

You’re no better than the cronies. You’re just a more poor one.

You don’t get paid simply because you’re a human being. If you get paid simply because you’re in need, you’re also getting paid because someone else is caring for you and is paying you. However, you get paid more because of what you do for other people. End of story.

February 12, 2014.

Things that I have for sale on Kindle.

Where you can financially support me if you so desire.

Why Inflation Is So Bad (As I Understand It)

One would initially think that inflation is no problem: if the money supply is increased, then wages increase, prices charged for goods increase, and there should be no net effect on the economy.

But the answer is that it discourages saving in favor of malinvestment.

That money that is printed goes into the economy, and when more money is out there, all of the businesses get the money, and therefore think they are doing better business.

So they invest that money into their “growing” business.

But the money didn’t come from increased business, so all of that money spent on capital goes to waste because the profits didn’t warrant the investment in the first place, and when you use the majority of your savings expecting markets to increase and profits to increase based on the false signal of inflation, you go bankrupt because you spent all your money on capital, which you have to keep up, with the expectation of making a profit. But if you don’t make a profit (the market didn’t increase: more currency was just printed), and you’re having to pay for upkeep, then you’re losing money and you’ll have to sell for a fraction of your investment if the market didn’t warrant that investment in the first place (which means that people aren’t going to pay that much for it because the market determined it wasn’t as profitable as you thought it would be, unless they falsely think the market is growing just as you did, and that’s how bubbles are created (which always crash)).

It’s the same thing that happened with the housing bubble: people bought houses with the expectation of selling them, and eventually, there were no other buyers, so people were stuck with the houses with no money to pay for them (because they used their savings and took out loans with the hopes of selling them later on for a profit) and they lost everything.

December 28, 2013.

Economics 2

The biggest misconception about economics is that it is a zero-sum game: that the wealthy are benefiting at the expense of the poor. But if you completely eliminate the wealthy, how does that make anyone else wealthy? With no wealth, that means that EVERYONE is poor.

Wealth is only created by benefiting your fellow man. It is NOT created by ripping someone off. If it were, the person would not buy the product.

You have to make choices. Economics is about making decisions to maximize your ability to get what you want. I serve you, you pay me. Someone serves me, I pay him. When you destroy that, you destroy a free society.

This means that someone else dictates what we are to get, and we have no say so over the matter.

I don’t know many that would wish to live in such a society.

When I sell a product, I have a high incentive to provide the best product possible, because you do not have to buy the product.

However, if I had a gun to your head, or threatened to lock you into a cage, I would have less incentive to provide as good of a product because I can get away with less.

This is the nature of the government: the government has the highest authority in the land to kill or imprison.

If you don’t like what they do, they can arrest you or kill you.

Are they ALWAYS going to provide us with the best possible products? That is an awfully optimistic (and somewhat delusional) view of government.

However, is a producer always going to provide the best product for the consumer? Probably not. But if a consumer is unhappy, don’t you think another producer will try to do a better job so that they can receive the consumer’s money?

How is it that every company succeeds by ripping people off? Will at least not ONE company try to meet the needs of the consumer?

This is what the free market is all about.

June 13, 2013.

Things that I have for sale on Kindle.

Where you can financially support me if you so desire.


Economics is based on productivity, not jobs. As the classic saying goes, if a healthy economy were based on jobs, roads would be dug out with spoons instead of bulldozers, because you would have to employ many times more people. However, I don’t think that anyone besides maybe Keynesians would argue that a healthy economy is created by taking away people’s shovels and giving them spoons. So what is a healthy economy ACTUALLY about? It’s about increasing the value of things. For example, a well made table has more value than the tree that was used to cut it. Trees are everywhere, and we don’t really pay for them (besides property taxes), but people will generally pay more for a well-made table than a tree that they wouldn’t use. Therefore, the tables are more valuable than the trees. This is how wealth is created. It’s amazingly simple. It is about exchanges. What you buy with your money is more valuable to you than the money that you have, or else you would keep the money and not buy the item. So ask yourself this simple question: how do people make money? Other people have to pay them. So what does this mean? If everyone wants money, everyone has to be paid by someone else. It’s a perfectly circular system. An absolutely beautiful one. That is called the free market.

The lazy and ignorant truly always will be poor. This is not to say that all poor people are either lazy nor ignorant. Charity is the only true way to help out those in need, not theft. You say you want to help out the poor, but you want to use other people’s money. If all of you socialists want to help out the poor, pool your money together and do it. If you had a simple understanding of capital, you would understand how wealth is actually created. If your source of income is to constantly steal from the rich, what are you going to do when you bleed them dry? If a company makes a lot of money, it is going to expect to keep it. The money that you take from that company will no longer be there if the company decides it is not worth its time to continue to keep working while you take the money from it against its will. That is exactly why companies move overseas: to keep the government from redistributing the money that they have earned.

Meanwhile, the government keeps giving people direct handouts while the real production goes overseas, and soon people can’t live without a government handout. But the problem is that the government does not create goods: it only creates paper. When you do not allow companies to keep the profits they have earned, they move their production overseas. That is why we buy things from China. So the more and more production goes overseas, the less and less value we have in America. Sure, the Federal Government can print off pieces of paper, as they do. But if everything is being produced in China, then what do we have to offer the Chinese in exchange for these goods? Those pieces of paper mean nothing to them if they have nothing to buy with them. So, they do not exchange with us, and soon we are left with no production and no means to consume. This is how depressions happen.

The only way to keep this from happening is to allow people to produce and consume. I do not think that there is any possible way for anyone to know exactly what will be produced in the future, at what costs, how much will be produced, nor any way for anyone to know exactly how much demand will be out there, nor at what costs. But the only way to figure this out even remotely is to allow the free market to flourish. I create something, offer it at a certain price, and see if people pay it. When everyone does this, you have a flourishing economy. Prices rise with increased demand, and fall with decreased demand. Production increases with increased demand, and decreases with decreased demand.

Think of it this way: how many people would buy a shit sandwich?

If a company is creating shit sandwiches, and offering them for $100 a turd, do you think that anyone is going to buy a sandwich?

Maybe for “shits” and giggles. Obviously, most people would consider that a huge ripoff. So they will not even entertain the notion of buying the shit sandwich. So in this case, people were getting ripped off, and the shit sandwich seller is not selling sandwiches. He is not going to make profits if he does not stop ripping people off.

However, smartphones are in high demand.

People love smartphones, and they are willing to pay a lot of money for them.

If they don’t, they don’t get the smartphone.

The company must pay for the raw materials, plus pay for the labor, plus pay for any overhead or bills, plus taxes.

They aren’t going to create these smartphones unless it is worth their time in the form of profits.

Therefore, high profits signal that people are getting their demands reached.

The more profits a company makes, the more the needs of the consumer are being met.

Remember, you are not going to pay $100 for a shit sandwich. That is the epitome of getting ripped off, unless you decided that the shit sandwich actually was worth $100.

Paying $400 for a smartphone is not getting ripped off. If it was, then why in the fuck are you buying the product in the first place? You are only buying it because you think it is more valuable than other things you could have bought with the $400.

Profits are a signal that you have created things of value to society.

There are two ways to create things of value through society: do it through the voluntary exchanges of a free market, or through slavery.

To those of you that thing “wages” are slavery, stop working then. Be self-sufficient. Don’t even worry about money. If you want people to do things for you without payment, who is going to do that besides a charity? How about if I made you build me a new house and a new car and all of these other things without payment? Now what if I offered you a sum of money that you would accept? That is the basis of a free market.

Whoever has been teaching that the free market is a greedy system built upon ripping people off is a liar.

No one thinks they are getting ripped off when they buy things from Wal-Mart.

They just think it’s greedy when they realize that Wal-Mart is earning the just compensation for its work.

Everyone wants to be rich.

But there is a reason that not everyone gets there.

The nature of wealth itself does not allow for this to happen, because wealth is created by value added: it is not intrinsic.

Wealth is not something magical. It only happens in two ways: through voluntary exchanges, and through theft.

Buying something is not theft.

June 13, 2013.

Things that I have for sale on Kindle.

Where you can financially support me if you so desire.

A Note About the Rich

Should rich people be forced to give their money to the poor people? Should McDonald’s be forced to give their money to the poor people? Do you like being told what you have to buy with your money? If McDonald’s was forced to give the majority of their money to the poor, there would be no incentive for them to stay in business.

They would say “Well, if we build this company, we won’t get to keep enough of the money to be able to do business, and we won’t have the profits that we want to achieve, so we’ll just close it down.” If you think that’s a terrible thing to do, would you want to be forced to keep your business open if you felt like you weren’t making enough money to keep it open?

If you start forcing people to pay more money than they are willing to pay for things that they don’t want, then bye bye McDoubles. Bye bye McChickens. Bye bye any money that would have gone to charities from McDonald’s. Bye bye jobs.

Isn’t it better to let everyone make their own decisions with their money, regardless of if they have more of it than you? Start making these companies pay more into places that they don’t want, and they will move to other countries. Make it illegal for them to do so, and they’ll shut down the company. No jobs. A company is not created so that they have to give you money. A company is created so that it can maximize its profits.

You have to give everyone the freedom to spend their money as they choose. Imagine if you couldn’t decide what stores to shop at, or if stores didn’t have to compete against each other with prices and quality of goods. Imagine if everyone were told what they could sell.

Where is the innovation? “You can’t sell computers, because they haven’t been invented.” Free markets are perfect to me. People are going to be rich and people are going to be poor. People get money by selling things that other people want to buy, whether it’s labor or whatever.

The rich give more to charities than the poor ever have in their lifetimes. Are they REALLY as evil as some people pretend them to be?

Things that I have for sale on Kindle.

Where you can financially support me if you so desire.